How IMEXHS Achieved Profitability with 10% Revenue Growth in FY25
IMEXHS Limited delivered FY25 results at the top end of guidance, reporting a 10% revenue increase and a tripling of underlying EBITDA. The company’s software and radiology services both showed solid growth, setting the stage for an optimistic FY26 outlook.
- FY25 revenue rose 10% to $29.0 million, exceeding guidance
- Underlying EBITDA improved to $1.6 million from $0.5 million
- Annualised Recurring Revenue (ARR) grew 16% to $34.8 million
- Debt reduced to $0.5 million; cash increased to $3.3 million
- Aquila+ software deployment and partner program expanded
Strong Financial Performance
IMEXHS Limited (ASX: IME), a provider of cloud-based medical imaging software and radiology services, reported a robust set of results for the fiscal year ended December 31, 2025. Revenue climbed 10% year-on-year to $29.0 million, landing at the top end of the company’s guidance range. Underlying EBITDA surged to $1.6 million, more than tripling from $0.5 million in the prior year, signalling a clear path towards profitability and cashflow sustainability.
Growth Driven by Software and Operational Efficiency
The company’s software segment grew 12% to $10 million, buoyed by significant enterprise wins including deployments at Oncolife and the Instituto Nacional de Neurología y Neurocirugía in Mexico. The partner program expanded to 27 active partners across 14 countries, contributing over $900,000 in new annual recurring revenue. Meanwhile, the radiology services division, operating primarily in Colombia, improved operationally with contract repricing, cost reductions, and automation initiatives, delivering consecutive quarters of positive EBITDA in the second half of FY25.
Recurring Revenue and Balance Sheet Strength
Annualised Recurring Revenue (ARR) increased 16% to $34.8 million, reflecting the company’s growing subscription base and contract renewals. IMEXHS also strengthened its balance sheet, reducing debt from $1.2 million to $0.5 million and boosting cash reserves from $2.1 million to $3.3 million by year-end. These improvements provide a solid financial foundation to support further growth initiatives.
Looking Ahead: Accelerated Software Growth and Selective Radiology Expansion
CEO Dr German Arango emphasised the company’s focus on accelerating software sales in 2026, leveraging the commercialisation of the Aquila+ platform and its unique selling points. While the radiology services business will grow opportunistically, the company remains cautious given government financial pressures in the healthcare sector. IMEXHS expects to exceed FY25 EBITDA, achieve cash positivity, and see stronger revenue growth in the second half of 2026, with more detailed guidance to be provided at the half-year results.
Overall, IMEXHS’s FY25 results reflect a company transitioning from investment to sustainable profitability, underpinned by disciplined cost management, strategic contract wins, and expanding recurring revenue streams.
Bottom Line?
IMEXHS’s FY25 momentum sets the stage for accelerated software growth and cautious radiology expansion in 2026.
Questions in the middle?
- How quickly will Aquila+ deployments translate into meaningful revenue growth?
- What impact will currency fluctuations have on reported results and guidance?
- Can IMEXHS sustain margin improvements in its radiology services amid sector pressures?
